CSL Capital Markets Event November 2025 For personal use only For personal use only Legal Notice IMPORTANT NOTICE AND DISCLAIMER This presentation contains summary information about CSL Limited (ACN 051 588 348) and its related bodies corporate (together, CSL) and CSL's activities as at the date of this presentation. It is information given in summary form only and does not purport to be complete. It should be read in conjunction with CSL's other periodic corporate reports and continuous disclosure announce ...

Core Insights - GSK raised its 2025 sales and earnings forecasts due to strong performance in its specialty HIV and cancer drugs, resulting in a nearly 7% increase in shares to their highest level since May 2024 [1][2] Group 1: Financial Performance - GSK's global vaccine sales reached £2.68 billion in the quarter ending September 30, surpassing analyst expectations, although U.S. sales of the shingles vaccine, Shingrix, fell by 15% [3][5] - The company expects annual revenue growth of 6% to 7% and core earnings per share to rise by 10% to 12%, factoring in current tariffs and potential impacts from 15% tariffs on Europe [7] Group 2: Leadership Transition - CEO Emma Walmsley is set to hand over to Luke Miels early next year, with analysts expressing confidence in Miels to achieve the annual revenue target of over £40 billion ($54 billion) by 2031 [2][6] - Miels acknowledged the target is achievable but did not provide specific details on his strategy for the upcoming year [6] Group 3: Challenges in Vaccine Sales - GSK's U.S. vaccine business faced challenges, with a noted decline in sales of influenza vaccines due to competition and a cautious outlook on the U.S. vaccine environment [3][4][5] - The company maintained its forecast for a low-single-digit decrease to stable revenues for vaccines, which accounted for over a third of third-quarter revenues [5]

Core Insights - GSK raised its 2025 sales and earnings forecasts due to strong performance in specialty HIV and cancer medicines, despite a significant drop in U.S. sales of its shingles vaccine Shingrix [1][2] - The company's shares increased by as much as 4.3%, reaching their highest level since May 2024, and have risen 25% so far in 2025 [1] Sales Performance - Overall vaccine sales for GSK reached 2.68 billion pounds in the quarter ending September 30, surpassing analyst expectations of 2.55 billion pounds [2] - Sales of the shingles vaccine Shingrix fell by 15% in the U.S., contributing to a cautious outlook for the U.S. market [3][5] Competitive Landscape - GSK's influenza vaccine sales also declined in the U.S. due to increased competition, mirroring trends seen by rival Sanofi [4] - The company faces challenges from U.S. vaccine sales pressures, including funding cuts for vaccine research and a negative public perception of vaccines [3][4] Future Outlook - GSK maintained its forecast for a low-single-digit decrease to broadly stable revenues for vaccines, which accounted for over a third of its third-quarter revenues [5] - The company aims to achieve annual revenues exceeding 40 billion pounds ($54 billion) by 2031, with expected annual revenue growth of 6% to 7% and core earnings per share growth of 10% to 12% [6] Financial Performance - GSK reported core earnings per share of 55 pence on sales of 8.55 billion pounds for the quarter, exceeding analyst expectations of 47.1 pence on sales of 8.24 billion pounds [7]

Core Insights - GSK raised its 2025 sales and earnings forecasts due to strong growth in its specialty HIV and cancer medicines, leading to a significant increase in share price [1][2] - Despite a decline in U.S. sales of the shingles vaccine Shingrix, GSK's shares have increased by nearly 4% this year, contributing to a total gain of around 25% [1] Sales Performance - Overall vaccine sales reached £2.68 billion in the quarter ending September 30, surpassing analyst expectations of £2.55 billion [3] - Sales outside the U.S. were a key driver of growth, while U.S. sales of Shingrix fell by 15% [3][4] - GSK's influenza vaccine sales also declined in the U.S. due to increased competition [4] Future Outlook - GSK's CEO transition to Luke Miels is anticipated to bring new strategies to navigate U.S. tariffs and offset revenue declines from expiring patents [2][5] - The company aims for annual revenue exceeding £40 billion ($54 billion) by 2031, with current estimates around £34 billion [5] - GSK expects annual revenue growth of 6% to 7% and core earnings per share growth of 10% to 12%, an increase from previous forecasts of 3% to 5% revenue growth and 6% to 8% earnings growth [5][6] Financial Performance - GSK reported core earnings per share of 55 pence on sales of £8.55 billion for the quarter, exceeding analyst expectations of 47.1 pence on £8.24 billion [6] - Revenue in the U.S. business grew by 7% at constant exchange rates, totaling £4.55 billion [6]

Core Viewpoint - Australian biotech CSL has delayed its planned spin-off of its vaccine division, CSL Seqirus, and cut its earnings forecasts due to a significant decline in U.S. flu vaccination rates, resulting in a share price drop of up to 16.6% [1]. Group 1: Spin-off and Restructuring - CSL had previously announced plans to spin off CSL Seqirus into a listed entity by June 2024 as part of a broader restructuring plan that included cutting 3,000 jobs [1]. - The demerger will now occur when market conditions are favorable for maximizing shareholder value, as stated by the company [7]. Group 2: Earnings Forecasts - The company has revised its full-year revenue guidance to a growth range of 2% to 3%, down from the previous 4% to 5% for the financial year ending in June 2026 [4]. - CSL now expects annual net profit after tax and amortization (NPATA) to increase between 4% and 7%, a reduction from the earlier forecast of 7% to 10% growth on a constant currency basis [5]. Group 3: U.S. Vaccine Market Challenges - CSL's CEO noted a greater-than-expected decline in U.S. influenza vaccination rates, despite a positive recommendation from the U.S. administration and a significant public health impact from infections [3]. - The U.S. vaccine market is facing headwinds, including funding cuts for vaccine research and leadership changes at the CDC, which could further impact vaccination rates [3][4].